Shares of Ruchi Soya Industries Ltd. skyrocketed 20.18% in early trade on Monday as the edible oil firm said that it will raise up to ₹ 4,300 crores from the capital market with its follow on public offer (FPO). Ruchi Soya’s shares are now locked at ₹ 964.40 apiece.
The issue will open on March 24th, 2022 and close on March 28th, 2022. Currently, Baba Ramdev’s Patanjali Group owns a 98.9% stake in the company and the public owns 1.1%. The Patanjali group will divest about 17% of its investment in the company.
“The FPO comprises equity shares of face value of Rs 2 each aggregating to Rs 4,300 crore. The issue also includes a reservation of up to 10,000 equity shares for subscription by eligible employees. If such placement is completed, the follow-on size will be reduced,” the company said in a statement.
Market regulator SEBI requires a minimum public shareholding of 25 per cent in a listed business. Patanjali Group’s holding in Ruchi Soya will come down to about 81 per cent and the public would hold about 19 per cent, post the FPO.
Ruchi Soya in a statement said that the proceeds from the FPO will be used for repaying outstanding loans, meeting its incremental working capital requirements and other general corporate purposes.
Ruchi Soya is one of the major players in the edible oils and soya products space in India. It gained from the countrywide distribution network mainly after Patanjali Ayurveda that boasts of its strong presence in the FMCG sector bought it.
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